Convergence of precise analytics, programmatic audience-buying tools, and stickiness of apps have made social media one of major ad platforms.
Social media has taken the world. There are currently over 1.96 billion social media users in the world, and that number is expected to grow to 2.5 billion by 2018.
Social media advertising budgets have also doubled worldwide over the past 2 years—going from $16 billion U.S. in 2014 to $31 billion in 2016. Social media ad spending is likely to exceed $35 billion in 2017, representing 16 percent of all digital ad spending globally.
200 B2B marketers were asked to rate the cost of demand generation channels based on the cost per lead in a survey. Over 50 percent of the B2B marketers ranked social media as “very low cost” or “somewhat low cost.” 42.5 percent are spent on search ads and 41.7 percent on display ads.
Social media ads can be quite affordable. You can chooose various options and some even offer you the opportunity to test your content organically before promoting it.
The world is going mobile and it is now an unavoidable fact that marketing professionals should put efforts into segmeting your target audience and using mobile social media ads to increase awareness and sales.
Because of the releatively low cost, you can try the "trial and error" method to see if any of your social media ads would generate CTRs and more marketing qualified leads for your sales team to pursue.
So what does the future of social media advertising look like?
- Hyper-personalization. I am no pychic and just a regular marketing professional myself but what I see happening is that everything in the world is going to become hyper-personalized. Big data, collected from customer's online activities and years of data, combined with artificial intelligence, will generate personalized suggestions whereever you go and whatever you do.
- Utiliziation of major and micro-influencers. Because most of the social platforms will be competing for positions in search and display ads, more and more brands will start to use major and micro-influencers for their campaigns depending on their budget. Influencer marketing will play a bigger role in social media advertising and the winning recipe is finding the right influencers for your brand.
- Viral campaigns. Social media advertising campaign on a special topic can be spun to make it go viral. Social conversations around the topic will ignite more people to join and comment about your brand, spreading the word. There is nothing more powerful than "word of mouth" with a positive sentiment.
- In-depth and accurate analytics. Even if one-time social media advertisement may be affordable, when dust accumulates, it becomes a mountain. You need to make sure your spending is justified and bringing in results that are positive to your brand awareness and ultimately sales. Analysis of how your social media advertisement is working, adjusting your social media strategy to fit to what is trending, and making sure your efforts yield ROI are a must. For that, simply using a generic analytic tool will just not be good enough. In-depth and accurate analytics service will be taken more and more into use.
As we move more and more into the future, new trends and technology will emerge, and if you’re a savvy marketer, you should be ready to capitalize on those opportunities.